GE’s Gas Engines Powering First LNG-Fueled Drilling Rigs in Giant Unconventional Gas Field

  GE’s Gas Engines Powering First LNG-Fueled Drilling Rigs in Giant
  Unconventional Gas Field

  *Seneca Resources and Ensign Drilling Launch Innovative U.S. Unconventional
    Gas Project
  *GE’s Jenbacher Gas Engines Replace Diesel Generators to Reduce Drilling
    Rigs’ Emissions
  *First Rig Converted in October and Second Unit Upgraded in November

Business Wire

PITTSBURGH -- November 27, 2012

To reduce the environmental impacts and improve the economic performance of
their U.S. unconventional gas production activities, energy developer Seneca
Resources Corp. and drilling partner Ensign Drilling have installed two of
GE’s (NYSE: GE) Jenbacher gas engines to power the first liquefied natural gas
(LNG)-fueled drilling rigs of their kind in the Marcellus Shale region of
Pennsylvania.

Seneca converted the power plants of two existing diesel-powered rigs to use
cleaner-burning LNG in GE’s 1-megawatt Jenbacher J320 turbocharged natural gas
engines. The Jenbacher units were combined with Ensign Drilling-designed rig
packages to provide all the electricity needed by each drilling rig. The J320
represents GE’s first U.S. Environmental Protection Agency certified
technology for mobile and stationary drilling applications.

Seneca Resources is a wholly owned exploration and production subsidiary of
National Fuel Gas Company, while Ensign Drilling is one of the world's leading
land-based drillers and well servicing providers for crude oil, natural gas
and geothermal projects. Prometheus Energy Group, one of North America’s
largest and fastest growing industrial LNG suppliers, is Seneca Resources’
turnkey supplier of the LNG and related equipment and services.

In October 2012, Seneca Resources and Ensign Drilling converted their first
rig, which is operating in Lycoming County, Pa. The second rig was converted
to LNG in November 2012 and was assigned to Seneca’s Marcellus Shale gas
leases in Forest, Elk, Jefferson and McKean counties.

The gas-rich Marcellus Shale formation is located in sections of Pennsylvania,
New York, West Virginia, Ohio and Maryland.

“We are excited to work with our partner Seneca Resources to implement this
innovative project that is using LNG in GE’s proven Jenbacher gas engines to
reduce the environmental impacts of energy production while giving communities
in Pennsylvania the opportunity to share in the economic benefits of
developing the Marcellus Shale gas reserves,” said Robert Geddes, president
and CEO of Ensign Drilling.

Ensign Drilling operates 15 drilling rigs exclusively on natural gas in the
United States—with 11 of them exclusively using GE’s Jenbacher gas engines.
The latest project with Seneca Resources further underscores the oil and gas
industry’s increased deployment of more efficient and cleaner on-site power
solutions.

“Our fuel-flexible Jenbacher gas engine technology offers customers
lower-emission on-site power generating capabilities, making it ideally suited
to support Seneca Resources and Ensign Drilling’s LNG initiative that will
serve as a model for other operators in the Marcellus Shale region,” said
Roger George, North America general manager—Gas Engines for GE Power & Water.

Powering a drill rig with natural gas instead of diesel can result in 60
percent lower fuel costs. LNG also represents a cleaner alternative to diesel
for the transportation industry and trucks, reducing overall combustion
emissions up to 25 percent. Truck fleets also can often reduce fuel costs by
more than 25 percent with LNG.

Unconventional gas is quickly becoming the most abundant source of natural gas
in the U.S. and now accounts for about a quarter of U.S. natural gas
production. By 2035, half of U.S. natural gas will come from unconventional
sources, according to the U.S. Energy Information Administration. The boom in
unconventional gas, up from just two percent of the total in 2000, has cut gas
prices to record levels, reduced energy imports and set the country on a path
to energy independence. It also is a major force driving the job market.

GE’s unconventional resources solutions, consisting of more than 40
technologies from across the GE portfolio, are addressing fundamental industry
challenges, helping customers to improve operational performance, reduce their
environmental footprint, increase resource recovery and drive demand for
natural gas.

GE’s portfolio of innovative distributed power solutions give businesses and
communities around the world the ability to generate reliable and efficient
power by using a variety of fuels, both on or off the grid. GE’s distributed
power technologies give customers—including industrial businesses, developing
communities, government agencies that are managing disaster relief and other
emergency power situations—the ability to generate reliable, more sustainable
power whenever and wherever it is needed. GE’s distributed power portfolio
includes GE aeroderivative gas turbines, Jenbacher and Waukesha gas engines
and waste heat recovery solutions.

About GE

GE (NYSE: GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in energy,
health and home, transportation and finance. Building, powering, moving and
curing the world. Not just imagining. Doing. GE works. For more information,
visit the company's website at www.ge.com.

About GE Power & Water

GE Power & Water provides customers with a broad array of power generation,
energy delivery and water process technologies to solve their challenges
locally. Power & Water works in all areas of the energy industry including
renewable resources such as wind and solar; biogas and alternative fuels; and
coal, oil, natural gas and nuclear energy. The business also develops advanced
technologies to help solve the world’s most complex challenges related to
water availability and quality. Numerous products are qualified under
ecomagination, GE’s commitment to providing innovative solutions that maximize
resources, drive efficiencies and help make the world work better. Power &
Water’s seven business units include Aeroderivative Gas Turbines; Gas Engines;
Nuclear Energy; Power Generation Services; Renewable Energy; Thermal Products
and Water & Process Technologies. Headquartered in Schenectady, N.Y., Power &
Water is GE’s largest industrial business.

Follow GE Power & Water on Twitter @GE_PowerWater.

Contact:

GE Gas Engines
Martina Streiter, +43-5244-600-2470
martina.streiter@ge.com
or
Masto Public Relations
Gina DeRossi or Howard Masto, +1-518-786-6488
gina.derossi@mastopr.com
howard.masto@ge.com
 
Press spacebar to pause and continue. Press esc to stop.